الوثائق والتقارير

Will migrants remit more if they can channel payments directly for education? lab-in-the-field and proof of concept trial results (الانكليزية)

الخلاصة

This note summarizes a proof of concept trial of a new product designed to allow migrants to send remittances for educational purposes. Migrant remittances are one of the largest international financial flows to developing countries, exceeding US$400 ... انظر المزيد +This note summarizes a proof of concept trial of a new product designed to allow migrants to send remittances for educational purposes. Migrant remittances are one of the largest international financial flows to developing countries, exceeding US$400 billion in 2012. One common use of these funds is to fund the schooling of the migrants children and other relatives in the home country. However, migrants may differ from remittance recipients in their preferences for how money sent should be used, with physical separation and limited information making it difficult for migrants to ensure money is used the way they intend. In such a context, financial instruments, which provide migrants with greater ability to monitor and control how funds are spent, could have positive take-up by some migrants, and may lead to an increase in how money is remitted. This study highlights this idea in two ways with Filipino migrants in Rome: 1) through a lab-in-the-field experiment which tests explicitly whether migrants will remit more when given the ability to direct this money for educational purposes; and 2) through piloting a new product called EduPay that allows migrants to directly pay for school fees in the Philippines. Results of the study suggest that migrants can be willing to increase the amount they remit for education if given the ability to exert some soft control over its use. There also appears to be some demand for a product that allows payment directly to schools, but logistically this is difficult to operate at a small scale. A proof of concept trial shows it is feasible, but also identified constraints to doing this which may be less of a problem at a larger scale. However, results suggest education labelling alone may be enough, suggesting also the need for future pilots of products that provide this feature without requiring direct payment to the schools.
رؤية أقل ـ